Chennai, Aug 6 (NationPress) Namakkal in Tamil Nadu, recognized as one of India’s premier egg production centers, faces a significant challenge following the recent imposition of a 25% tariff on Indian goods by the US. On Wednesday, an additional 25% tariff was enacted, halting the export of eggs valued at Rs 20 crore.

Sources from the industry reveal that this was the first instance in which Namakkal had sent a trial shipment of 1.20 crore eggs to the US in June, marking a crucial achievement for local poultry producers.

This development had sparked hope among exporters, who viewed it as a chance to enter the lucrative American market.

Namakkal's poultry sector plays a vital role in India’s food supply chain, generating over 7 crore eggs daily. Out of this, approximately 7 crore eggs are distributed within Tamil Nadu and neighboring states, while an additional 80 lakh eggs are exported daily to Middle Eastern markets, including various Arab countries.

However, the newly imposed US tariffs have abruptly interrupted this emerging export relationship.

The 1.20 crore eggs intended for the US are currently stranded in Namakkal with no overseas buyers in sight.

At the local market, each egg is priced at Rs 4.50, while transportation to the US costs around Rs 7.50 per egg. It was anticipated that these eggs would retail for Rs 15 in the American market.

With the export plans currently stalled, the Egg Exporters Association is actively devising strategies to redirect the unsold inventory to domestic markets to minimize wastage and avert a surplus situation.

According to the Association President, Vangili Subramaniam, "The opportunity to export 1.20 crore eggs to the US was a unique chance that unfortunately coincided with the sudden tariff imposition. This consignment represents only a small portion of our daily production, so the overall impact on the industry is manageable. We will ensure these eggs are sold within the country."

Experts in the industry acknowledge that while the loss from this halted shipment is considerable, Namakkal’s strong domestic demand and established export channels to the Middle East should help mitigate the impact.

Nonetheless, this incident has raised concerns among poultry exporters about the future of trade relations with the US, particularly if the tariffs persist.

For the time being, farmers and traders in Namakkal are redirecting their efforts towards traditional markets while remaining vigilant about evolving global trade policies that may reopen pathways to the US.